Iomega Corporation announced that it has accepted a cash takeover offer of $213 million from EMC Corporation. In exchange, Iomega said that it would abandon its plan to buy ExcelStor, a unit of China's Great Wall Technology Company Ltd. in a stock swap that was valued at $306 million. Iomega said that the termination of the ExcelStor deal required it to pay $7.5 million to ExcelStor.
Iomega, based in San Diego, California, is known for its external hard-disk drives, removable storage and network-attached storage devices, and its product offerings will allow EMC to grow in the consumer and small business markets. EMC is the world’s largest data storage company. The acquisition is expected to close during the second quarter of 2008.
The real question now is how will EMC use Iomega and what does the future hold for the brand going forward?
Read the official Iomega press release here.